A subsidiary still holds all net assets revalued at the date of acquisition. Which working paper eliminating entry below is most likely to be the same whether the consolidation takes place at the date of acquisition or in subsequent years?

Question

Quizplus · Accepted Answer

The equity eliminating entry (E) adjustment to capital stock remains the same whether the consolidation takes place at the date of acquisition or in subsequent years because the parent's investment in the subsidiary and the subsidiary's capital stock are recorded at their historical amounts, which do not change over time.

A Subsidiary Still Holds All Net Assets Revalued at the Date